MILAN, April 23 Reuters Telecom Italia TIM shareholders are expected on Tuesday to hand CEO Pietro Labriola another term to press ahead with a revamp centred on a planned sale of the former phone monopoly39;s fixedline access network to U.S. fund KKR.

The reappointment of Labriola has been separately challenged by small minority investors Merlyn Partners and Bluebell Capital Partners, which each hold a 0.5 stake in TIM.

Both have been questioning the merits of the KKR deal, worth up to 22 billion euros 23.4 billion and backed by the Italian government, which holds an indirect 10 stake in TIM.

With its 24 stake, Vivendi could have obstructed Labriola39;s reappointment but it opted to abstain despite its own opposition to the KKR deal and frustration with the way TIM has been managed.

Labriola, who has come under pressure following a record stock price plunge last month, has defended the sale as the only way to give the ailing former phone monopoly a fresh start, cutting its heavy debt.

With Vivendi sitting out the vote, the outgoing board slate headed by Labriola is likely to win the right to appoint twothirds of the seats.

Labriola39;s expected reappointment is a positive outcome for the stock, broker Equita wrote in its daily report, noting it removes a source of uncertainty over the execution of TIM39;s planned revamp.

TIM shares were up 4.5 at 0.2338 euros by 0740 GMT against a 0.6 rise in Italy39;s blue chip index.

1 0.9398 euros

Reporting by Elvira Pollina…